O/O to Small Fleet Question

Discussion in 'Ask An Owner Operator' started by GreyBeardVa, Apr 1, 2013.

  1. GreyBeardVa

    GreyBeardVa Bobtail Member

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    Hello all,

    I want to expand from a single tractor to multiple. I generate enough cash to purchase 1 new (to me - a late model used is more accurate) tractor every 7 months. My analysis suggested that the revenue growth rate is linear (a straight line up - not steep) with a progressive driver cpm, profit sharing, .10 per mile into maintenance fund per tractor, etc.

    I've only recently joined the forums after reading many of the posts where I've noticed that the opinions are varied on the industry outlook. My plan is to get my MC and DOT numbers to run under my own authority, get connected with a few good brokers and load boards to keep the trucks busy. I do drive one of the trucks so I am planning on getting office help to manage the paperwork, help find loads, etc.

    Any thoughts are appreciated.
     
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  3. critters

    critters <b>Late For Dinner</b>

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    I would try to get local customers for loads outbound and only use broker's for return runs if possible.
     
  4. bigdad7

    bigdad7 Road Train Member

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    i would question wheter you will be able to keep your maint at 10cpm with a driver in it ........
     
  5. starsonwindow

    starsonwindow Medium Load Member

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    GBV May I suggest that if you are going to be driving one of those trucks that you use a dispatcher that will do your paperwork and find the loads while you and the driver drive. I am thinking about doing this, get a few more post under your belt and then PM me so I can talk with you about doing this for you, I would work off of a percentage of your revenue. let me know. Thanks.
     
  6. Steve3662

    Steve3662 Light Load Member

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    Just don't get to far ahead of yourself is my opinion. We started with one truck and are up to 10. Don't think because you have an extra truck it is going to make extra revenue all the time. Good drivers are not easy to come by. There are way to many that have the mindset that you are made of gold and you have an orchard of money trees in the back yard. Drivers no matter how good you treat them will jump ship in a heartbeat and your truck will be empty. We have a very low turn over rate but it gets rough if one quits and you have to find another to qualify. I hope you like baseball because curveballs are a norm when it comes to running a fleet. You will get to the point when you have to get out of the truck and do office work. I still drive but very little once every couple of months to fill in. I don't have the time to drive.
     
    G/MAN Thanks this.
  7. G/MAN

    G/MAN Road Train Member

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    You won't have all your trucks running all the time. You should plan for a truck to sit until you find a qualified driver. There are also other considerations. You will have good drivers, but you will also have some who will steal, sell your fuel and abuse your equipment. If it weren't for drivers, you could make a lot of money owning trucks. Don't get me wrong, you can still earn good money, but your plans may be a little too ambitious, starting out. Then again, you could be right on target. I would caution you about taking on too much debt with this economy. I would also encourage you to consider the worst scenario when making your projections and plans for your business. If you have not run your authority and plan on doing so once you start buying trucks. I would suggest that you try running your authority with a single truck that you drive for a while before jumping into owning multiple trucks and also running your own authority. There is more paperwork running your authority and there are also other considerations. You could also start out by buying more trucks and leasing them on with your current carrier and later make the move to running your authority.
     
  8. GreyBeardVa

    GreyBeardVa Bobtail Member

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    Thank you G/Man and Steve and everyone else for excellent suggestions. I am considering leasing to a company prior to getting my own authority; however, as you all know it is difficult to make any decent $$ when the middleman takes his cut. Maybe you have suggestions for a good company to lease on to? According to my numbers I need $1.05 per mile just to run the truck when I was looking into leasing onto a company the best I found was about $1.00 per mile plus FSC which would bring me to something around $1.45 per mile. For $0.45 cpm I could be a company driver and avoid all of the extra work of owning - something you all know very well. Steve - I would be very interested in discussing the path you took from 1 to 10 trucks if you are interested in sharing. Thanks again everyone.
     
  9. Saddletramp1200

    Saddletramp1200 Road Train Member

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    Yep, truckers are ######. Better truck, more $ were gone. I have a bridge for sale.
     
  10. old time

    old time Medium Load Member

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    Think of the 80/20 rule. You will spend 80% of your time on 20% of your drivers if you hire well. That 20% will make you question your decision often.
     
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